Flat Dollar


DEFINITION of 'Flat Dollar'

A fixed dollar amount, generally in the context of fees or commissions paid for services. For transactions above a certain minimum size, flat dollar fees may be preferable to fees charged on a percentage basis. Flat dollar amounts are usually specified in contracts and thus are independent of transaction sizes.


Flat dollar fees on stock transactions charged by online brokerages have made it much more economical for the average retail investor to trade stocks. For most services, cost-conscious consumers combined with companies competing for their business will usually cause flat dollar fees to replace fees based on a percentage of the transaction's value.

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  1. Where do I look for fees that I am charged on investments? What are those fees called?

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  3. What action is the SEC likely to take on 12b-1 fees?

    The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b-1 fees are used, or ... Read Full Answer >>
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  5. What is the cost of a share purchase?

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